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The Indian stock markets declined for the third consecutive day on Wednesday due to profit booking in auto, pharma, and capital goods sectors, coupled with ongoing foreign fund outflows. In a session marked by volatility, the benchmark BSE Sensex dropped by 138.74 points, or 0.17%, to close at 80,081.98. The index saw 22 of its constituents finishing in the red, and at one point during the day, it fell below the 80,000-mark to reach an intra-day low of 79,891.68.
The broader NSE Nifty also closed lower, down 36.60 points, or 0.15%, settling at 24,435.50. Stocks such as Mahindra & Mahindra, Sun Pharma, Power Grid, NTPC, Adani Ports, Larsen & Toubro, ICICI Bank, and Titan emerged as the biggest losers from the 30-share Sensex pack.
On the other hand, Bajaj Finance stood out as a top performer, surging nearly 5% after the company reported a 13% rise in consolidated net profit, reaching â¹4,014 crore for the second quarter ending September 2024. Other gainers included Tech Mahindra, Tata Consultancy Services, HDFC Bank, HCL Technologies, and Bajaj Finserv, which helped limit the day's losses.
Foreign institutional investors (FIIs) sold shares worth â¹3,978.61 crore on Tuesday, according to data from the exchanges. Conversely, domestic institutional investors (DIIs) bought equities amounting to â¹5,869.06 crore.
Commenting on the day's market movements, Vinod Nair, Head of Research at Geojit Financial Services, noted: "Investor sentiment has been impacted by underwhelming corporate earnings and foreign fund outflows, which have weighed heavily on market performance. Despite this, mid and small-cap stocks are seeing some interest from bargain hunters, though it remains uncertain how long this buying spree will continue. The rising US 10-year Treasury yield also signals that rate cuts from the Federal Reserve may take longer, prompting a cautious approach towards emerging markets."
In the global markets, Asian indices had a mixed day, with Seoul, Shanghai, and Hong Kong closing higher, while Tokyo ended lower. European markets were also trading mixed, reflecting the uncertain global outlook. In the United States, stock markets finished flat on Tuesday, offering little direction for global investors.
In the commodities market, the global oil benchmark Brent crude fell 0.97% to USD 75.30 per barrel, adding further pressure on investor sentiment.
On Tuesday, the BSE Sensex had plunged 930.55 points, or 1.15%, to close at 80,220.72, while the NSE Nifty had dropped 309 points, or 1.25%, to finish at 24,472.10.
As per data from PTI, the continued pressure from FIIs, subdued earnings, and global economic conditions are expected to keep Indian equities under pressure in the near term.
(With inputs from PTI)
